Goldman Sachs puts Microsoft back on elite list

Goldman Sachs has put Microsoft back on its Americas Conviction Buy List of elite stocks, six months after taking the company off the list. Wrote Sarah Friar, Goldman analyst, in a note to clients this morning:

We believe there are several near-term catalysts to help drive the price of Microsoft’s shares higher, beginning with its fiscal 1Q earnings report on October 25. We are expecting a strong quarter and revised our estimates higher a week ago, to reflect the positive impact from the aQuantive acquisition and out-performance in Halo 3. Other catalysts include the upcoming Windows Server 2008 launch, Christmas Xbox 360 sales, and a strong balance sheet for buybacks.

Microsoft shares rose 40 cents to about $30.44 as of 9:30 a.m. Pacific.